Steve Berry Recently Purchased a New Boat

question 199

Multiple Choice

Steve Berry recently purchased a new boat. This type of purchase would be made using Steve's ____ income.

• A) gross
• B) personal
• C) disposable
• D) net
• E) discretionary

---

Definitions:

Physical Reductions

Decreases in the quantity or physical state of assets, often associated with inventory or fixed assets through use, wear, and tear.

FIFO Costing

FIFO Costing, or First-In, First-Out costing, is an inventory valuation method where goods first purchased or produced are the first ones sold.

Pretax Income

The amount of income earned by a business before taxes have been deducted, also known as earnings before taxes (EBT).

Inventory Amounts

The price of items that are up for sale at the termination of a bookkeeping period.